Science & Technology

Snapchat Reportedly Tests Ad-Free Subscription Tiers

Media reports that Snapchat is currently testing consumer subscription offers without ads.

Snapchat Reportedly Tests Ad-Free Subscription Tiers

The mentioned actions of the specified company are a reflection of a general trend in the social media industry, in which firms are looking for new ways to monetize their user base. Subscription offers without ads are one of the options for obtaining a permanent income.

In-app Meta’s Threads, Australian Snapchat user Jonah Manzano reported that the new tier, which does not provide viewing advertising materials, is available in the section Down Under and has a cost that is almost three times more expensive than Snapchat +.

The firm is currently committed to developing and implementing new subscription options. In this case, the company, according to preliminary information, does not plan to limit itself to one offer for users. For example, about two weeks ago it became known that a code was found in the app indicating that the firm is testing Friends & Family Plan. This offer is likely to be included in the general Snapchat subscription program.

The company’s chief financial officer, Derek Andersen, during a conversation with analysts as part of the firm’s earnings report in October, said that the launch of Snapchat+ brought good results, noting that it was the right decision in terms of audience coverage and profitability.

Currently, there is a clear trend in the social media industry to search for subscription models that allow to monetization of the user base, which in a sense has become a necessity against the background of changing advertising rules. In October, X, formerly known as Twitter, announced three tiers of subscriptions. In this case, the cost of an offer to interact with a social network based on a commercial principle varies from $3 to $16 per month. The price depends on the functions available to the user. TikTok is also currently testing an ad-free monthly subscription.

In October, Meta announced the launch of paid subscription offers without ads on the virtual platforms Facebook and Instagram, which are part of the digital ecosystem of this technology giant. These commercial options for interacting with social networks are intended for users living in the European Union, the European Economic Area, and Switzerland. In this case, the technology giant made a forced decision, since the rules for ensuring data privacy on the mentioned continent are being tightened. Experts say that such a subscription program for social media platforms owned by Meta is unlikely to be launched in the United States.

The change in privacy rules in Europe has become a factor influencing the ability of the mentioned technology giant and other companies operating in the same industry to increase advertising revenue. Against this background, the firms are striving to develop and implement new monetization options.

E-commerce offers are being actively launched on social media platforms. At the same time, research shows that most consumers do not yet consider this virtual space as a digital store. For example, in the United States, out of 3,000 respondents, only 14% said that they make purchases on social networks. At the same time, 43% of survey participants view goods and services on the specified virtual platforms.

Experts note that in the current period of the unfavorable situation in the global economy, subscribing to social networks will not interest many consumers, since their financial priorities are somewhat different. In the United States, according to the results of a survey of more than 2,100 respondents, it turned out that half of them would decide to cancel their subscriptions to the said virtual platforms due to the critical limitations of their personal budget. At the same time, only 19% stated their willingness to continue paying for social network tariff plans in case of significant financial difficulties.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.